A senior Labour peer has told talkRADIO that unless Jeremy Corbyn stands down as Labour leader the party will be “trashed” at the next election.
Lord Clive Soley said he is “frustrated and angry” to be trailing a government undergoing its own internal battles.
“There’s no doubt in my mind that we will not win an election with him there. I think that’s the problem,” he told talkRADIO's James Whale.
“As someone who wants a Labour government and has seen Tory governments get in simply because we can’t get our act together, I cannot tell you how frustrated and angry I get about that.”
Labour peers are considering holding a vote of no confidence in Mr Corbyn over his handling of antisemitism allegations against the party. The non-binding vote is expected to put pressure on the party leader.
It comes as 67 Labour peers published a newspaper ad which accused Mr Corbyn of “failing the test of leadership”, and Lord Soley said the leader “can’t see the institutional racism that he’s presiding over”.
“There’s little doubt that the party will be found to be institutionally racist at a senior level,” he said.
“Jewish people are leaving the party in quite large numbers. Ordinary people are leaving the party in quite large numbers and a lot of people are not voting for the party anymore because they do see there’s a problem.
“That’s what’s doing the damage, I mean this should never ever have gotten to the stage it has.”
On Wednesday, Baroness Hayter lost her post as shadow Brexit minister after she attacked Mr Corbyn's inner circle and the way it criticised the BBC over a documentary probing anti-Semitism in the party.
A Labour Party spokesman said: "Dianne Hayter has been sacked from her frontbench position with immediate effect for her deeply offensive remarks about Jeremy Corbyn and his office.
"To compare the Labour leader and Labour Party staff working to elect a Labour government to the Nazi regime is truly contemptible, and grossly insensitive to Jewish staff in particular."